Strategic Intergenerational Bequests with Stochastic Convex Production
This note reconsiders the well-known model of strategic bequest / altruistic growth, but with stochastic production satisfying a strong convexity condition. Existence of a Markov-stationary equilibrium consumption schedule, which is continuous and with all slopes in [0,1]' is established. Under smooth data and interiority assumptions, this schedule is differentiable, and marginal consumption is in (0,1).
|Date of creation:||01 May 1994|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +32 10474304
Web page: http://www.uclouvain.be/coreEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:1994025. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If references are entirely missing, you can add them using this form.